Why is mainstream media still confused by the 80/20 rule?

A recent study by Purewire revealed that only around 20% of Twitter users are contributing to the service, with 80% having fewer than 10 followers, and 37.1% having no tweets – leading Techcrunch to suppose most people on Twitter are sheep.

Meanwhile the New York Times reports the shocking discovery that bloggers who assume it’s an easy way to get a book deal or give up their day job often get disillusioned and give up. The article quotes the 2008 Technorati State of the Blogosphere, with 7.4 million (5%)  of the 133 million blogs tracked by Technorati having been updated once in the last 120 days.

The most active 2% of Wikipedia users made 73.4% of edits in 2006 (including maintenance and administrative edits).

The iPhone OS had 8% of the smartphone market, but generated 43% of mobile web requests and 65% of html usage.

Are we noticing a pattern here?

I suspect around 20% of the people reading this post will be knowingly thinking of Vilfredo Pareto, who noticed that 20% of the people of Italy owneed 80% of the land back in 1909, which was then generalised by Joseph M Juran in 1941 into the Pareto Principle, as the common rule of thumb that 80% of the effects come from 20% of the causes, i.e. a Power Law with a The Long Tail.

Internet access gives everyone the ability to self-publish – it doesn’t mean everyone will. Or entitle everyone to be able to make a good living out of it.

And more importantly…

Even if just 1% of bloggers, people uploading video to Youtube, or podcasters achieve sustainable fame and income – how does that compare to the number of aspiring writers, film directors or radio DJs who never even got published or broadcasted under the old model?

The Long Tail never said everyone would get rich – you can either try to rise up to the hit end by being one of the small percentage working harder, being smarter, and getting luckier – or you can aggregate the long tail by working harder, being smarter, and getting luckier, just as Google did with Adsense.

As usability godfather Jakob Nielsen broke it down in 2006: “In most online communities, 90% of users are lurkers who never contribute, 9% of users contribute a little, and 1% of users account for almost all the action.”

The internet doesn’t radically change that dynamic (although it’s definitely possible to move the figures slightly within a specific online community). What it does is hugely increases the numbers included in that 1%, and in that 9%, which has a bloody big impact on the 90%.

That’s the big lesson – a small number of people can get Wikipedia over 55 million U.S. visitors in a year, or create the fact that 20 hours of video are uploaded every minute (equivalent to Hollywood releasing 86,000 films every weekend!). It’s what got facebook to over 200 million users, and Twitter to over 32 million.

It doesn’t mean it’s all popular, or high quality.

It just means that most of mainstream media is likely to end up covered in content as if it went out in a desert sandstorm – and successful businesses need to figure out how to engage and build on that 1% or 20% which creates the value for everyone else.

The global economy, advertising and blogging

I’ve been having a lot of conversations about advertising recently, whether the subject is relevancy, media publishers, or bloggers.

Another Crap Advert by Zohar Manor-Abel on Flickr (CC Licence)

Another Crap Advert by Zohar Manor-Abel on Flickr (CC Licence)

It’s something that the current economic climate has definitely driven to the front of the minds of a lot of people, as they look to the future.

One of the things that struck me is how a downturn in advertising might affect my blogging here and on 140char.com, and then I happened to come across an interesting post by Steve Hodson about Paid Blogging.

I’m lucky enough to have a job I really enjoy, and didn’t start blogging as a way to earn an extra income – for me the intangible benefits are the ones I enjoy, whether it’s sharing ideas, meeting new people, or possibly being able to be involved in new opportunities etc.

But at the same time, I do run Google Adsense advertising on both blogs, along with Amazon Affiliate links in the hope that I can cover my hosting costs, and then spend anything extra on books and gadgets. Plus, it means I have some understanding of how they work if I ever want to consider using them for other projects.

Steve’s post outlines his frustration at being told the advertising model is broken, particularly for an up-and-coming blogger, and yet the alternative revenues that are suggested don’t seem to provide an alternative.

The trouble is that none of the popular internet movements or theories points to a redistribution of wealth necessarily.

Open Source means free as in ‘free speech’, not ‘free beer’.

The Long Tail doesn’t say you can be rich existing in the long tail of content. The success stories are the aggregators, or those that can make it far enough up the tail to make the living they require or aspire to.

Web 2.0 allows you to communicate, collaborate and connect, but some people will gain more from this financially than others.

And too often we miss the fact that many successful people within paid blogging have several projects and revenue streams going on at once, if not hundreds in some cases.

There’s a feeling that by putting hard work into something we’re entitled to get fair payment for our efforts and get the payoff at the end – something that often isn’t true.

Which is why it’s about focusing on making the most of the journey.

And I do disagree with him that bloggers can’t make money from revenue streams aside from advertising. But again, not everyone who self-publishes a book, releases an E-Book, or produces blog-related merchandise will be successful – and we’re still at an evolutionary time for online content and revenue, and for advertiser adoption. But by offering the best possible value proposition for anything you try to monetise, you stand the best possible chance of making it.

And I think 2009 will be a tipping point for new mechanisms of advertising/revenue. Whether it’s from people looking to improve the result for content creators and publishers ( for instance, tools to create your own revenue share and blog network), or improving things for the recipients of revenue efforts.

But I really don’t have the answers here. If I did, I’d have retired to my own island by now! But what I’m really interested is in your opinions, questions and ideas. So how can blogging content creators thrive, and how would/do you monetise it?